GERMANTOWN, Md. -- Optelecom-NKF Inc., a provider of IP video surveillance solutions, reported revenue for the second quarter totaled $7.7 million (U.S.), compared to $10 million for the same period last year.
Revenue increased sequentially from $7.2 million, reported in the first quarter of this year.
Optelecom-NKF lost $698,000 or 19 cents per share, compared to a loss of $127,000 or 3 cents per share, in the same period a year earlier. Second quarter results improved sequentially from this year's first quarter loss of $1.6 million or 45 cents per share.
During the second quarter ending June 30, the company completed the sale of its Electro Optics coil manufacturing business. Optelecom-NKF received $1.15 million at the close of the transaction, with a balance of $250,000 held in escrow, subject to the completion of a specified technology transfer.
The impact of the Electro Optics sale is included in second quarter's financial results. The related gain was offset by $868,000 in restructuring charges recorded during the quarter.
Optelecom-NKF also said it completed several major restructuring initiatives during the quarter intended to strengthen its financial and operational framework. The initiatives included consolidating U.S. manufacturing operations into the company's existing Dutch manufacturing facility.
The initiatives are expected to generate annual savings of approximately $2 million in 2011, with partial savings expected during the balance of this year.
"We have taken the steps required to put Optelecom-NKF back on track toward regaining profitability. Our new structure lowers fixed costs, which should enable Optelecom-NKF to generate earnings at reduced revenue levels," says Dave Patterson, Optelecom-NKF's president and CEO. "We are now concentrating our efforts to drive improved U.S. sales performance. We have recruited strong leadership and realigned our U.S. sales teams in a way that addresses the unique needs of the key industry sectors we serve."
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